Forever 21, described as “the most transformative retail concept” in the world, has nabbed a prime position in one of the most tightly held retail markets in Australia – Pitt Street Mall, Sydney.
The brand today announced it has finalised a 10-year lease on the world’s 8th most expensive retail locations after a 5-year search, taking 1,741 square metres of prime shopping space, spanning three interconnected levels.
Rent prices in Pitt Street Mall average at $9,37.15 per square metre, according to Colliers International 2013 Global Retail Highlights Report.
Pitt Street will be Forever 21’s third Australian store. Its first is due to open in Brisbane in November, followed by its second in Macquarie Centre, North Ryde in December. No date has been set for the Pitt Street opening.
Jatin Malhotra, Forever 21’s director of real estate and business development, said “Australia is a terrific market which provides great scale, enabling us to expand further in the coming years. Pitt Street Mall was always one of our top ten locations worldwide and we are thrilled to be opening.”
Forever 21 follows Zara, Uniqlo, Sephora and H&M, which all recently secured high profile retail spaces in Sydney.
The “fast fashion” brand’s sales increased 82% from 2007 to 2012, according to Reuters.
With analysts saying: “Forever 21 is becoming too big for the specialty retailers to ignore… At this size, rapid growth could have ripple effects on the other retailers as Forever 21 takes more share,” the brand could be an added threat for local retailers, already feeling the squeeze from a flood of international retail giants to recently enter the Australian retail market.